A beautiful 7meter tall pine tree… I had an offer on one of my renos yesterday; the offer is “subject” to me removing this awesome tree. The pine tree is Heritage Listed; however being so close to the building (2 mts) it can be removed because it could damage the house etc, etc. The tree is healthy and provides a nice shade.
The potential buyer even threw in $5 K more for us to remove it. It can be removed for way less than this.
Some spice:
– With this offer we make 19% cash on cash (4 months).
– Middle of December
– 2 months on the market (expected and accounted for, room for 1 more month before starts “eating” profit).
Isn’t this an odd request?…I have no doubt in my mind that the tree STAYS, am I being a tree hugger? I lose the buyer if the tree stays…
Would you take profit or trust mother nature…
Hi John,
This is a bit of a moral question that only you have to live with so only you can answer. I see your point about wanting it to stay, I would love to have it!!! If the buyer were to purchase without this condition and then remove it themselves, the outcome is the same (ie tree gone) but you were saved the decision. If it were me, I would probably agree to removing the tree BUT they would have to put up a bigger deposit and waive the cooling off period. It is a tough call for anyone with half a conservation bone so I empathise with you. What happens if the contract falls over after the tree is removed? Any idea why they want it removed, if they are concerned about it falling on the house, would an aborists report help? My opinion to sell withthe tree removed is only because if it now doesnt sell in the next month (very quiet during that period here) then your bottom line is affected.
Just a few thoughts
Good luck
Tammy
If you knew the guy was going to cut down the tree after you sold it to him, and he didn't make a demand for it to be removed before the sale, would you still sell it to him?
The other concern though, is that say he signs the contract based on you agreeing to remove the tree, then reneges on the deal, now you still have the house and no tree.
Or, maybe he is a stooge for a neighbor who only wants the tree removed and this is a plan concocted to get it taken down (and maybe I read too many novels?).
This all seems weird to me. I would be tempted to offer the place at a discount to cover the cost of the tree removal and let the buyer get it removed. Either way it will cost you money, and this way, the tree removal won't be your doing; it will be the buyer's. He might simply take the discount and not remove the tree anyway, but at least you will be happy that the tree was not removed by you, or it stays, and you will be happy about that too.
I think if the tree could legally be removed by any other purchaser anyway, you have no way of ensuring the tree is "saved", so I say take the cash and remove the tree. If you feel badly about removing the tree, donate the extra (ie $5K less what it costs to remove that tree) to a tree planting charity, and save a lot more trees! Though I confess that I dislike conifers… I'd rather see some awesome native forest hardwood trees saved!
Just an opinion, like any other….
Regards, Tracey in Brisbane
If i were selling the property then I wouldn't care if the tree went,
Thanks everyone, it just feels a bit weird, one minute I am yeah, “I love nature” and the other minute I am, “as an investor my objective is to make profit, etc”.
L.A Aussie (Marc), thanks for your feedback, agreed, the guy is a stooge… and yes, all I want is not to be part of it… and take my profit. I am also thinking conspiracy theory, LOL…
I am going to sit tight and get the price I want without having to touch the tree. I realise this is not about trusting Mother Nature, is about trusting my experience.
This is why I love property so much; the process is just as exiting as the result.
Thanks guys
Cut the tree and use some of the profit to plant few to make up for it.
i agree, have the tree removed donate towards my be planting 10 trees and make the profit you have. As whenever you sell this property whoever the buyer is may knock it down, u cant hold property for good just coz of tree or can you. may be somethign to think about.
Maybe he wants you to remove it just in case it falls and damages the house when he does it.
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The selling agent rang me yesterday saying there is another party interested in the property. Also, the cool thing is that I always have an exit strategy when I buy, for this property is to get a tenant in and it will be cash flow neutral. This property has also development potential (950 sqm) with rear lane access, etc.
It is good to have choices and to be able to afford adding another property to your portfolio without having to start chopping trees down (or bowing to requests from a stooge).
Happy Investing
JONCHU wrote:The selling agent rang me yesterday saying there is another party interested in the property. Also, the cool thing is that I always have an exit strategy when I buy, for this property is to get a tenant in and it will be cash flow neutral. This property has also development potential (950 sqm) with rear lane access, etc.
It is good to have choices and to be able to afford adding another property to your portfolio without having to start chopping trees down (or bowing to requests from a stooge).
Happy Investing
If it will be cashflow neutral with a tenant, and has subdivision potential, then why are you selling it?
This seems like the perfect IP to me; costs nothing to hold, and will make a profit with a subdiv.
You could even do the subdiv, sell one of the properties, and keep the other which should be cashflow pos, and have great tax benefits and good equity.
I'll buy it!!Jon,
Why are you selling?
JLI have a few other properties with similar characteristics; I was just off loading … another one…
The property is gone now, another happy customer. When you leave something on the table for the person after you, the results can be great.
Thanks for the feedback.
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